Listed REIT stock returns have a low correlation with the returns of other equities and fixed-income investments. Thus, including listed REITs in your investment portfolio helps build a more diversified portfolio. In addition, the following are advantages of investing in listed REITs:
Income & Longterm Growth: REITs provide competitive long-term rates of return that complement the returns from other stocks and from bonds.
Liquidity: Shares of publicly traded REITs are readily converted into cash because they are traded on the major stock exchanges.
Professional management: REIT managers are skilled, experienced real estate professionals.
Oversight: Independent directors of the REIT, independent analysts, independent auditors, and the business and financial media monitor a publicly traded REIT’s financial reporting on a regular basis. This scrutiny provides investors with a measure of protection and more than one barometer of the REIT’s financial condition.
Disclosure obligations: REITs whose securities are registered with the SEC are required to make regular SEC disclosures, including quarterly and yearly financial reports
The risks associated with investing in publicly-traded REITs may be similar to those risks associated with investments in securities generally, including credit risk and interest rate risk. For a complete description of the risks associated with REITs, please see the Fund’s Confidential Private Placement Memorandum.